BKKT - Earnings call 3 2023 | Bakkt Holdings, Inc.

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Operator

Greetings, and welcome to the Bakkt Q3 2023 Earnings Conference Call. Question-answer session will follow the formal presentation. And as a reminder, this conference call is being recorded. I will now turn it over to Ann DeVries, Head of Investor Relations at Bakkt, please go ahead.

Ann DeVries

Good morning, and thank you for joining us for Bakkt third quarter earnings call. separate Investor presentation will Relations forward-looking a found can contain including statements. our on website presentation, earnings that call be certain Today's at www.investors.com to current are results actual forward-looking materially or and on statements. statements expressed differ uncertainties, management's those in These are may based to subject implied risks from cause and which expectations such

the Commission. please For uncertainties related and and the refer its a to risks more Exchange complete discussion on Securities filings with Bakkt statements business, and forward-looking to

During addition generally are accounting to in today's in principles, calculated financial non-GAAP refer that presentation, results discussing to will accordance measures. accepted with certain we

this information on with more please for non-GAAP the of presentation measures, our filed financial refer to For release, morning the and earnings our this, SEC. results our basis was which

today's our are and now that, platform. the prepared questions I'll remarks, After Gavin. turn Chief Executive on available to community. Chief Officer. that me it from questions investors Karen Gavin from answer answer the and Michael, call we After analyst Officer; Financial to Gavin received over through we our will Alexander, be Karen Technologies Joining State will

Gavin Michael

and our and to you, we scalability fit, good path year, profitability. joining. simplify clear areas to communicated the capital our Thank Earlier strong Ann, our this for thanks product market towards everyone, morning, business of allocate with plan business and a

we've of substantial against progress XXXX, course made During the this goal.

our and crypto priorities expanding our expanding specific network year allocating platform, included and capital. Our for the client activating strategically

remains still a and bad have have of volumes. the crypto on actors market muted framework The all these We headwinds been priorities to lack market challenging teams in nimble conditions. deliver regulatory from space Our despite U.S. trading clear flexed and challenging.

active challenges.We've seeing international in And This to we've capabilities We've the look key flexible us these our the of looking green with the with this markets more needed revenue However, generate international tokenization. This our adjusting will by for ETFs beginning crypto participate to us. ability expansion front. growth act and end just demonstrated X XXXX. we to priority, in quickly our on meet been to new and as digit made as a we asset there's investors strategy is in come institutional strong year. are to for shoots

We volumes diversifies our in experienced clients reliant on a given we've as with trading volumes. signing market our custody focus the flight also The on enhancements the related it's offering. on our stream continue to We've delivering as streams, revenue volatility to and as with future by revenue our revenue that model. not more and product on up signing further our subscription-based well custody recent quality of reliance reduced clients new new

on a it's we've have been prudent focused in always Lastly, hasn't this and slower controlling but spend. challenging the lot paid It on of light real core platform landscape. evolve year, decisions revenue down our built very hard our and make that. with impairment a off trading expenses, and that's excluding enhancing been XX% capabilities compliant expenses. continue to been We've secure of has crypto made easy, opportunities market operating with cuts focus to to been year-over-year. adapt industry-leading XXXX the and we'll That's advanced changing charges, and of year regulatory with custody costs progress, and our across

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strength our of flexible spectrum as to solutions. and also capabilities clients with redemption be loyalty comprehensive full continue a a provide we Our

overcome U.S. crypto attractive international the market, committed we've into new remain expanding trading clients With we capitalized existing regulatory addressable on markets to environment. the more with to quickly in challenging and opportunities adjusted U.S. expand strategy with While to clarity we've markets. that, sizable our and

currently several continue to to Argentina, and as We Brazil American Ibex. including and in Latin We with such are and partners Mexico. with Spain regions, trading Happy further live our LatAm, crypto plan expand in

just EU, stages BACT As anticipating including U.K., our to throughout offer we Kong, international of all in and examples expansion plans and shared X.Over last Asia, activation our year-end. week, crypto These the Singapore trading to custody Hong services the and are beginning efforts. the by Australia

into clients. and we we network will follow will hardest land-and-expand launches, is we've that, painless. with done following initial of enter into further markets, new expansion we new Once part the is As markets other The reach our our initial expand relatively a strategy, expanding meaning landing.

taken of new customers going ensure our first are As regulatory we can steps we've broaden millions compliant already markets, to we quickly confidently these within reach and and to forward.

our In emphasizing continue addition further as broad expanding to network fit. grow product market international the and clients, U.S. in our well, to the we

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provide to our our We and Equities active that internationally Happy signed during currently evolve also we share revenue, with days, from and clients mix in expect revenue moving onboarding efficiently. smooth newly we quickly. an platform in live will seamless activate experience. and a go around uncertain experiences, and stability coming domestically, rate subscription-based our both live order executing with markets. revenue customer quickly traders We're XX enable which and As our Fin crypto due which offer matures than activation faster before, business with increasing to crypto and clients recurring blockchain.com, BTC, at adding our We're to integration grow to ever annual will of integrate Lebo

blockchain.com partners. U.S. our Louisiana, Webull with our Webull by including customer Virginia. of year-end. to to at Hawaii, we're crypto sign-ups. new executed with capabilities facilitate account We smooth into launch, rapidly and and enabling regions, Nevada a with Pay now migration Bakkt relationships accounts also the expanding continue appointed recently expected current U.S. provider with our We're as expand existing We Investor crypto its

their we we experienced this During customers activity team deeper Webull engagement continue quarter, experience the and to will expanding on slowdown to the a client in levels. activity customer Webull Webull to Pay. We've relationship roll our monitor working the out platform. during finish Due We're pleased quarter, to drive been enhancements our migrating with migration closely with and Pay. customers' improve to

have some platform. the new our and crypto business, Webull exit also the to a model working and We're Bakkt with decided other exciting Webull clients has created crypto accounts on to Pay cases. relationship use them on As transition expand maintain to

have Caesars with experience. to bring members. rewards team credits our working rewards closely will user-friendly their for been crypto live, via option redeem have Once We members the Bitcoin to their Caesars Bakkt's Rewards the capabilities to

are highly than XX Rewards capabilities million crypto worldwide Caesars to bring more members acclaimed of excited the to QX. Our the platform teams early in

including are platform capabilities, with flexible We and segregated increased structure wallet engine. our relaunching policy a custody

Dogecoin, platform. can Bitcoin to and include USD platform be We'll total Ethereum, coins, custodial assets. service, of a crypto illustrating platform Our off-exchange co breadth expanding that safeguard custodied Ethereum offers settlement our the X foundation on for Inu Bitcoin, offer coin. clients Litecoin, In Shiba trading, collaboration the our Classic, we a and our Cash, of service be coins will the clients, to their with

and redeveloped been our We've best by our digital and from interest Our many the both we've gained offering increased upgraded offering. spread in already asset our to marketing sandbox. to has clients in continue with now operating platform efforts digital notably significant awareness our awarded prospects existing custodian of banker,

addresses investing trading of service Ibex asset and to shared money LiteSpark remittances, we've be our service global a Lightning looking as allow that off will many to Bakkt's simple partnered of a and speculative spoken X ramps. new for utility. the instantaneous deposits the with relationship the money leveraged BXB support clients. to cross-border and of sending transmission, forward compliant lighting on Bitcoin to interoperable core, and we makes custody have collaborating on at standard includes as to for been we'll new network, leverage build settlement, While A and be our the be recently service and an number select providers Lightning, open for Lightning multifaceted UMAs. for withdrawals the near-term will with of about or launch working together this, cases. use leading we've service and always out them in e-mail crypto sending This Money UMA trading of global times everyday collaboratively evolution can Universal With to from we're powering the with PXP.We network news and a

and vision that natural We by Internet for are for fit payments shared LightSpark business. have partnerships a our These a native IBEX. is

So results our it Karen to over financial with that, I'll discuss operating to the for turn and quarter.

Karen Alexander

clearing are services through will our and execution, third A now walk financial reminder in we GAAP, encrypted gross accordance quick customers. loyalty costs brokerage basis our customers. with services in I the Gavin. we in we provide you crypto fees By in are an provide loyalty corrective results. quarter that the and we contrast, principle present revenue, we Thanks, a since services on redemption our agent

on for as execution of this remainder crypto drive section presented clearing costs a is the call, and one-line Crypto refer ECB net fees, will brokerage which revenue basis. loyalty we costs So to and of and and additional crypto-trading revenue earnings contribution services crypto and margin. gross costs. revenue presentation see these notes for our Services between represents crypto related items the the on to Please detail difference

Turning XX. to Slide

systems of services services for related April loyalty services in third by about towards had offerings to expectations million, generally and the testing. have and our million our quarter, products were results. and Apex $XXX.X impairment which of quarter gross allocating acquisition XXXX revenues existing maintaining increase relationships we We crypto conducted year, due capital Total with accounting clear Crypto, $XX.X million the the significant we in business We meet crypto our given XXXX. revenue. goodwill the crypto our on reflects have principles, net which revenue. while increased spoke total ECB accepted third Operating Earlier financial intangible significantly $XXX.X of a our this path to a had year-over-year expenses closed more strategically revenue profitability. driven which year-over-year of loyalty in was activity.During business. assets annual million, of crypto costs We X, accordance and which We $XXX.X

pullback significant for we've revenue lowered the the long-term loyalty expectations business. in growth investments Given business, our on this

a excluding recognized in intangible expenses, and back operations million. $XX.X noncash charge impact our our reduction crypto intangible $XX.X This and technology any affect This brand charge intangible liquidity impairment charges non-cash cash share million, of not were in diluted improvement to primarily recognize loss future loss million and asset goodwill the are actions. we million diluted is of XX.X XX% ECB non-cash year-over-year. does company loss earlier and from from basic and a was share a an asset impairment loyalty net result, assets flow relationship decrease cost $X.XX the name The activities.Operating share we customer operating million average a on a of loss compensation the in of The $XX.X total or or on have or the represents loss is As due and $XX.X operating $XX.X XX.X million and continuing as allocated intangible. in expense to million, per shares. net the $X.XX leaving to Bakkt a average interest share for a Net benefits resulted attributable the Inc. was to count base benefit shares. on quarter non-controlling of which per an net Holdings,

total September EBITDA their slightly this primarily Slide due a accounts has and improve new we call. non-cash $XXX.X for as own decline On was our share period. the the industry-wide the $XX.X items XX% Our costs. million, million. shares, EBITDA XX, the Slide closely third Class trips. XX were losses prior in and XX, new was which crypto experience $XXX.X remained drive working to count activity period shares due of reflects quarter issuances loss for during share the activity XXXX in of and relatively adjusted A in shareholding as as team for due that the quarter to roll quarter remains well consistent on aggregate ICE. to largest and they by company. Gross for is the the not mentioned third the Note the of that with shareholder which impacted we million deeper quarter XXX.X overall was ownership lower have as activity for to to sale On $XX.X of revenue adjusted revenues respectively. Total Gavin with Webull to in million. been and was revenue customers' that map. of of our XXXX. migration earlier customer and levels periods. improved down Adjusted percent year-over-year slowdown due Adjusted and during the We've EBITDA out saw quarter-over-quarter the for we monitor EBITDA customer adjustments The Pay, prior enhancements EBITDA of acquisition-related EBITDA engagement million Webull benefit ICE lower services third Webull quarter year levels the and compensation to show their our

revenue, coming This earlier, our will provide Net revenue X% royalty and volumes increasing revenues revenue stability for of increase mentioned an our an annual Subscription during activity to reliance was of matures, flat to year-over-year. relatively the was quarter, This also due subscription-based million $XX.X and Gavin from expect evolve activity travel levels. business as higher crypto million primarily increased mix which driven $X.X were should million year-over-year. with that service we revenue As redemptions. our by uncertain and stream recurring X% on transaction in reduce share our air our activity revenues. $X.X industry loyalty year-over-year. revenues up This improvement was of market

XX. Slide to Turning

compared X% third $XX.X were driven head down reduction Crypto a in non-cash quarter costs expense.Other and approach depreciation expenses. expense due operating decrease pleased year-over-year of XXXX of is XX% our declined million for due lower $X.X expenses were paying acquisition-related year-over-year disciplined that We're to down compensation marketing in total are the million G&A expenses of count off. of compensation million expense These the and expenses. a includes lower million Total have XX% $XX.X third We to of grading $XXX.X expense. and to of million management amortization expense due volumes. to and by Total quarter ECB. $XXX.X crypto cost to

highest we remain provide we we returns. will to and that We ensure prudent costs towards with that opportunities our strategic allocate capital are our around spend how where the

Turning to Slide XX.

slide lower was levels lower activity of Cost comparing ECB $XXX.X million services customers. from were Pay million industry-wide crypto $XXX.X in crypto the impacted ECB. Crypto costs and Crypto gross by services for a have volumes Webull and We revenue in revenue Gross quarter.

results year quarter, revenue partial and in the benefit agreement by quarter for offset the in for a the pay reflected the stabilizes. During to share Bakkt we the WebullPay retained we to is while increase adjusted this the from with our Webull decline adjustment rest acts revenue revenue. of as gross engagement The

graph, a XX XX is services rate historical periods. crypto take approximately performance see and Slide gross 'XX was than have points the will between to this basis take margin the we XX, of points, compare will activities, columns from historical compared average into our also result, revenue crypto-trading basis known X The QX continue higher rate contribution the the indicators. XX of XX higher As that if of in as you QX for you key which to On XX. quarter QX our

historical slide purposes. accounts end quarter, As increase million of this crypto reflects time. enabled a third X.X at had steady a on over reminder, comparison which included figures we crypto the Apex for the in We have the KPI

increased is we of to of orange loyalty million Notional trading line. to Next, loyalty accounts broken the was third transacting due crypto we was XXX,XXX and certain quarter, into out break points. $XXX have decline transacting accounts. $XXX and volume accounts card which $XXX,XXX have and the XX% is On the redemptions. notional related which a to in There down loyalty transaction which out our and traces. million loyalty of also transacting and were volume up delisting hotel, car were accounts, due crypto activity related year-over-year million between which volumes, crypto crypto redemption. were $XXX for to Crypto traded from for the $X.X redemption crypto gift in X% Loyalty activity. rental was included were we sequentially Total million, traded chart, industry redemption accounts this were also

here, down crypto amount sequential a a volumes were depicted on As substantial trading our basis.

Webull from Pay by volumes During delisting lower certain and of were customers points. levels the the activity quarter, impacted

crypto industry, the crypto in which redemption X% the down was X.X%. Meanwhile, normalize year-over-year. quarter-over-quarter volumes trading loyalty line these was decline overall was factors, you market right down in our for If volume with

coins Our prices. a certain million assets the sequentially Quinn impact under from of reduction custody due XX% certain to delisting in $XXX declined and

Turning to XX. Slide

have We equivalents quarter ended with available-for-sale third our the condensed cash, securities. sheet. balance cash and $XX.X million We of

usage $X.X Our quarter for was the cash million.

non-recurring options cash features the from related returned addition delisting of of us which During we clearing to had is quarter, a and million, ICE of the and was $XX.X contracts. to

activities return usage cash slightly which from the from second was operating $XX.X quarter the $XX.X higher million, cash usage cash our ICE of Excluding million. clearing, was than of

expenses, expense we operating utilization earlier, which volumes, an loyalty acquisition-related cash Recall from and with our as in led marketing pickup $XX due crypto XXXX updated retail insurance crypto cash be be lower our we activity. to seen softness free and flow and in utilization both have expectation revenue for in loyalty flow cash improvements million, saw $XX discussed usage. crypto we million that and between that travel expense. were base, market million continued trading activities the to including and lower Although redemption quarter, lower transaction our million. $XX Revenues would we $XX which would net contribution that revenue and between last free revenue slight well as outlook update, Since levels

international contribution update. XXXX recently as timing $XXX contribute net million million revenue in $XX crypto bit flow expenses. highlighted approximately revenues continued of of to crypto free $X,XXX is crypto million directly outlook the expect reducing we progress Additionally, have $XX later revenue in a announced XXXX. in million, Accordingly, to drive of clients and we retail into costs to million. which $XX last activity QX retail new And quarter's notwithstanding revenues to strong comprised free million. less $X,XXX expectation gross loyalty of million for net crypto now going institutional flow our of XXXX impact be in are our in utilization previously backlog utilization, customers signing $XXX such, crypto million, loyalty net will for will progress anticipated cash XXXX, we late begin cash reducing $XXX cash This to and to The to than

billion. into This these customers of provides to driven encryptocosts royalty Net expectation million. net driving revenue $X,XXX for to $X.XXX guidance revenues from $XX is approximately to We by revenues crypto translates to of X,XXX retail $X,XXX loyalty new XXXX expected line customers. new revenue and time preliminary million million crypto gross expect million on The XXXX. increased with institutional activities million, Our million revenue increase loyalty $XX of color in revenue revenues $XX the preliminarily slightly. to of and contribution

of of revenue mentioned international Gavin I of crypto It an subscription to his outlook also revenue. by expected basis institutional expectation is closing of further subscription-based to earlier, expectation and with back At approximately revenue, million, to the $XX our includes breakeven our revenue be with pathway to by we see reflecting utilization retail XXXX As of crypto XXXX increased million high includes increased XX% be crypto geographically $XX XXXX. customer an adjusted an in revenue. remarks. XX% cash approximately to segment the cash both a free will the in revenue on growth it retail Gavin range, diversity expenses. by ramp-up reductions custody EBITDA end driven pass to for the end now the

Gavin Michael

Karen. Thanks,

growth a was quarter, ability where made growth progress of Crypto deliver clients and to actively this we're Apex platform, we ones. Just industry-leading stronger and another success. international demonstrated quarter substantial win our existing final our acquisition momentum our We're for executing from clearly results thoughts. new leverage our few to made consecutive and execute We've building our strategy. This future for and past

end. is a in milestone Our attractive international crypto how us X the difficult testament forward will this faced year's environment U.S. and challenges This in case, capabilities push in with for live we a around to regulation. by markets when crypto significant be

infrastructure manage strong going crypto clients our of building adding onboard more industry-leading prudent the Our activate we'll and to quick other We're of expanded even expeditiously.Lastly, network on as resonates clients our clients moving all roster. capital to flexible, a how with but be and our market we're team industries participants. of new crypto group of extensive an that in and We're and capabilities is We're with we to diverse to synergies important pleased success. continue find we're what's allocate with capabilities still to these is our paths quickly the adaptable expenses. making, progress

we Our quarter such results, on the manage making increase and our make us skimp redevelopment money profitability, reaping Lightning Ann investments areas rewards. disciplined with path to the to in we're that for custody of in And managing it foundation our all expenses making with I'll we are where for smart Thank clearly to as joining We're our results spend with and network to being but in over have utility. are this you even the clear hard-earned demonstrate those to crypto look approach investments today. forward clients, our the to sharing how Q&A. investments sense that yielding won't turn make stronger to you that future it that, a

Ann DeVries

Gavin. Thanks,

votes. questions the session, move number from community. to of by today answering Leading a from our investor Q&A Let's into ranked questions by over top we'll start the

from analyst games. questions some consolidated that, similar have of the live address I questions the we'll We community. to After turn

question? first we can know price, our risk stock is a we answer the cash question [Indiscernible] why we stock They repurchase. this delisting investors, about price, including to like do our to whether for what using plan are The at would you and which submitted. aren't Karen, several to will raise stock address is

Karen Alexander

Of on course. I all incredibly has pressure downward our that been of stock shareholders. price frustrating know the our to

certainly performance. disappointed have by been I the a price fellow stock shareholder, As

receive reverse necessary we are should split. such action We take listing stock stock price. would And to we notice, monitoring a as our a closely remediate

an on to our path Karen. committed shareholders. in options. I consider accelerate And the all sustainable are drive for hasn't all shareholders It our us. ultimately our a We will ahead remaining our higher. for well. Thank with believe business always but our repurchase growth public deliver since that sticking shareholders journey, generate way to Ultimately, we our returns the to allocate shareholders been to you believe price best this investing tempting, not profitability. and higher days there it will to company what is of company. are and in returns capital and invest to our to business, That's milestones a our We and stock for easy while better Thanks, provide stock

Ann DeVries

question next success. few one? themes MasterCard and on our partnerships, you hit to HanchilaS Jabra of Gavin, from take the around can Our status plans drive including a future this

Gavin Michael

sure. Yes,

think that we investors announced Apex there Crypto comment from agree ago. don't of mentioned the We've one since any haven't partnerships a with major we acquisition was I had a that. the we of to year up I April X, acquisition of new number late-stage before in which and have clients Apex numerous we signed clients closed long. other negotiations of when our since a Crypto is who expect announce quite too

QX. I exciting we to our before, work which, Our across us and industries and and opportunities markets. enable entry also international should mentioned, client, diverse into and foray provides our new as clients. new acquisition, relationships to which new MasterCard this span with expand. alliances reiterate to network a will said in expand as to I the broaden value as and land which new our continue This that provide marks blocks, and provide and on prospective and greatly I've Also into will greatly gaming the an closing our This extensive signed across Caesars capabilities with up being pad them early Entertainment customers. such with we will industry, relationship marks our to of our fire strategic industry entertainment to We their formed launch leaders able crypto world. prior reach

process work, completed we're have and the testing. the Our in respective teams development of

gets activate catalyst happen to here remain wait when and with need will environment sidelines our be work on us. to I be for a ready that companies U.S. them that to think does strategies. really happens, think sales I to but their efforts crypto We'll crypto the resume for expect collective to regulatory fixed, able We said, commence soon. many the But until that TradFi

Ann DeVries

And last one? who any we this thoughts [Indiscernible] applications. can you ETF question if asked in your from the are involved give on the Gavin, spot of

Gavin Michael

and finance excited have approval bring and stamp opportunities question. The larger Bitcoin mainstream with being for SEC appropriate. a applications towards and providing financial up step with for you spot serve the this in thanks prepared We're themselves the a Yeah, market anchor the world. when as acceptance updates for ETFs open of We're here to custody been see be will legitimacy we're custodian. happen traditional core to market this a qualified for and a from Bakkt, the approval looking positive of forward us, the to will approval product would to

Ann DeVries

now operator take up would open like with the the questions I to community. the And from to that, phone turn back to over line the call to analyst

Operator

Instructions] [Operator Thank, Jefferies. Trevor first comes Williams question from from Our

Yvonne Jeng

Trevor This Williams. Pay and is, question you is more relates trend as change for rate thank we how this the Yvonne crypto beyond take color should growth in of what in on fees, pace OpEx Webull second revenue do first the and services one you. rate you forward? XXXX, provide My ECP a agreement the see and to Can the share quarter. revenue my about the normalized expect going excluding And crypto with the increase take to Zhang costs

Karen Alexander

rate. with Hi Karen. take to happy I'm the there, it's that Starting take question.

That Pay to Webull migration quarter. a to existing the over that to continue accounts we've be, we've activate during successfully customers of completed third migration mentioned to Webull's Webull required As earlier, accounts new crypto crypto. worked to Pay create the

acclimating metrics Webull as trading of surprising and themselves saw we disruption the were it that some and they group see to that decrease Pay wasn't from So experience. customers in new

gross rev of in actually customer So to trading Webull made to roll us out we've adjustment Webull the very to a allow collaborative monitor and meantime, retain to activity reduced of that closely with this our testament the working to share that think is I volume really agreement our them relationship. more to enhancements. And been

just continue that this of will to at expect time just revert and [Indiscernible], the we Apex one trading sure Good it end those year. evolve, then take XX rate, be Pay experience terms XXXX make typically return, has can continues So historical And to to question, back which in it. history second we'll include through to Webull you the been the more see levels XX customer between and the is the to we expectation have bps. you as point I if in of more repeat the historical and

Yvonne Jeng

what more this of excluding crypto normalized ECP I cost beyond growth a as curious just was fees? pace Yeah, you year, see expense and

Karen Alexander

is of of that growth, XXXX Bakkt We're opportunities to a one of systems with seeing we've team lot reset the to lot continue integration the legacy we've our team. on of and the the efficiencies the through actions Apex so in highlighted things taken Yeah, see expense expense footprint. a increase to and

you When terms are to flow So cash the free the guidance our gave I we look XXXX to XXXX. in expect down in actually at utilization, that for that when preliminary we at expenses somewhere in XXXX. that of reflects, guidance, basis. continue reductions come on that cash continued the rate to cash the guidance $XXX you expenses probably It we in million provided, a compare looking expense to revenue our expense rate

Yvonne Jeng

so you much Thank that's helpful. super

Karen Alexander

no That's problem.

Operator

from The next Securities. question Rosenblatt from Andrew comes Bond

Andrew Bond

for side guidance pretty with revenue the ramp on expecting XXXX, you're current rate. the net big start I gross revenue in just and from run the want to a

idea kind additionally, growth? and from given this just for how the additions what with primarily international activity are volumes [Indiscernible] get of environment stronger So broader wanted on assumptions I [Indiscernible] to of or And tracking quarter-to-date the are the an your Crypto? volume

Karen Alexander

it outlook traction activation a get in the that very mentioned terms in helpful I In we of guess, call. signing and towards [Indiscernible] we in off, earlier fact to I new the end set was these clients the thought lot of XXXX, preliminary the given important as XXXX. and for of XXXX, outlook have for made relationships, A are first

new backlog -- you as do you don't I a see engagement a that as XXXX. $XX a net big we range. for it basis into be The to and it crypto of million time provided, XXXX. expect in for well, market going well as And of we The really and relationships if these -- that is a range that strong reflects So $XX in that get impact of as million. variance when We kind somewhere line of be see activations. down to component component you on is lot break what between international revenue, yes, put that range is we a

of any as as look net think international trading, where and you that model. coming that signed be for look above a that a within half revenue. that we if will land if flat basically we we've a the as into Gavin gain progress they will that tier. crypto under then crypto sign almost will fact how is revenue But have and relationships So a subscription volume, up retail generate only footholds revert these And can mentioned, again, really we a a of model activate scenario, And they for they lot a signing also of to at And made expand more go certain we more revenue volume-based international of these as they internationally, not the XXXX. it it markets. of and that tier these into up amount a far pay relationships,

that, of that in the [Indiscernible] can ARR provides component least at a So good XXXX. guiding terms it of the I composition terms think, of again, in initially of be how also that we're

Andrew Bond

to on new And onboard expected to is you plan? percentage the Can revenue you this the expect these us piece kind recurring? shift that where some that as subscription just And do and your XX over of get of kind with international what Okay. there. next of currently what you months subscription recurring remind partners

Karen Alexander

Yes.

the of loyalty of now, part right revenue our So is in portion subscription business. stream our the

purely a $XX that And to certainly from particular it's we on are contribution So to down about we're but XXXX, contracts, revenues. that of based dollar combo. is limited international, can subscription-based then you the for the if looking royalty type in potential of into see ARR break the revenue, not anywhere million revenues the on what XX% for international of XX% basis from crypto increasing about,

Andrew Bond

Okay.

front. and capital much the for on front. guys the your plans into here. position from environment improve are run year, the lastly doesn't feeling Any just current Just heading given How you if particularly volume me rates next the on your capital thoughts on

Karen Alexander

Yes.

As -- XXXX. I the about we outlook I mentioned for when talked

an reducing the At making by on a the Looking at XXXX. adjusted expenses revenue EBITDA and to the path we basis to the continue of progress end outlook, breakeven potential that we're see in fundraising sufficient think X-year that the our company's provide to was Yes. fund did about map. intended original operations. pack the have cash Certainly, a you we journey, moment, road we from as to the

naturally plans is So I execute something need imminently the guidance that that we the on of but gave. for be think company capital into the would to as we the in get XXXX, raise, outlined we next steps that not the looking in at terms we we

Andrew Bond

Okay, thanks Karen.

Operator

The from next Peter your question Peter go from line open, comes Christiansen Citigroup is Inc. ahead.

Peter Christiansen

A quick the on disruption. one Webull

the that towards curious or value-add pricing you're hear was on pressure. custody the sense custody the the incremental seeing just pricing. the relaunch Just quarter product, that generating or curious, And We throughout halfway there? then of value-based been continually end? has under if Just

relaunch the if helping curious new you the pricing. Just that's some drive of capabilities and

Karen Alexander

Webull Peter, certainly the part I can the of first take Pay. question on

So July. over the Webull experience started in beginning at so Webull Pay to their migration of QX, new the customers of

the impact to on the to X. see third engagement retroactive of agreement quarter. executed And levels share adjustment is at we that beginning July So started that the them we with route to the

what minimums. and the the terms to is of the executing some the There is an that terms AUC bring of the we AUC of pricing, are we're that custody In that most we're platform. seeing of amount scaled pricing fee in model product to on

hip there not well. are that of it's have subscription a So services other more but component volatile, of completely as elements customer

something we see instance, more capability we've bubbly disaster market coming to about as amount. for that for. recovery the a us of subscription a that That talked So is is

the or we those mostly revenue type to AUC opportunities we some increase. that revenue. say, with would additional see subscription I capabilities, And ARR subscription-based certainly, it's, So for then as expand opportunity for

Peter Christiansen

appreciate you, Karen, thank Great, it. I

Operator

comes Roy question Next Tower Research. from Water from Instructions] [Operator John

John Marc Roy

I questions. X a color more great. to get got useful. Sure, And I'd timing It on anything network. was that. little on the unchanged And be love would

Gavin Michael

take for Being is an we're the one. added doing network dimension really I'll unchanged what to part John, of this custody.

by partnership Karen think to market what and we're is as So value-added said services where We that we're remarks. have the in holding as anticipate network the of seeing with transaction. like key, model, about, one question in if is hugely said lot. Pete's asset the you acting We are that those, unchanged we but the on the end. part responding scalable. key this then we're one the that into castody coming It's the being signers active earlier these model prepared in as of year's of I a And the in

John Marc Roy

regulatory the do little was barriers say for to the clarity markets transitioning a the the Which having curious, U.S.? bit best you U.S. then outside at market obviously, or some maybe see the needs international. least And to Great. setup I you least.

Gavin Michael

about like partners who already sentiment who We good for we're working really it's the John, the I And we're and how with for strong provided regulatory operate. within where with that pathway morning together Spain LatAm a should the shifting markets where market. ones of assets that think want of guardrails that we've the take this We've we have today, trading regulators the advantage clarity. working some strong markets with our spoken see with that live demonstrated see with entry. we to

positive the As to returned sentiment see we consumer see a regulatory clarity, level. we very

Singapore, this Kong, we've morning, about as with Europe. Hong of those that like And to think, business, ones shift an together as that as and Am, ARR U.K. all the presentation. Lat we also model subscription underpinnings markets spoken outlook the are to model are growing Karen that that a an and forecast to evolving part to we good live the Karen the of the the provides gave I mentioned, in So Australia parts

recurring strong giving sentiment, regulatory with against clarity, us we advantage move I revenue into think is confidence really backlog being us as great to consumer our model able together that take of XX.

John Marc Roy

thank's so Great, much.

Operator

management call questions, the We to I'll remarks. have concluding team no the hand any so back further for

Ann DeVries

our earnings to We for morning. you soon. again look this call attending forward everyone, Thank you, connecting with

Operator

very call. for much [Operator Thank attendance. you Instructions] today's concludes your This

Bakkt (BKKT) 14 Nov 232023 Q3 Earnings call transcript